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Scott McGillivray’s Vacation Home Guide

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After hosting Income Property for many years, it’s safe to say Scott McGillivray knows a thing or two about purchasing homes. Scott joined us in studio to chat about what you need to keep in mind before buying a vacation home.

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1) Factor in Extra Costs

First of all, if you're planning to renovate the place, you should plan for overage! For example, if you're thinking that the renovations will cost $20,000, allot $25,000 for unforeseen overages. Secondly, plan for the property needing more maintenance than others. If you're planning to rent the house out, there may be need for a cleaning service.

Be aware that insurance is typically higher for rental properties because they are vacant so much of the time. You might want to think about investing in some in-home technology, like a remote thermostat, remote key, and security/cameras, since you won't be there year-round.

2) Research All Four Seasons

Really know what the peak seasons are and the various highlights your area and property has to offer. You want to identify what the highlights are for each of the seasons (i.e., spring is great for hikes, while winter could be great for skiing and other winter activities.) based on what type of property you have (like a beach house, chalet or cabin).

3) Make Sure Your Property is Rentable

The challenge with vacation properties is that people get very emotionally attached to them, so they don’t necessarily consider the financial implications. You have to consider the financial gain when buying a vacation home! First, you have to be able to afford it for yourself before thinking about renting it out.

A good rule of thumb is that if you can't afford it on your own without the revenue you'd get from renting it out, it's not a financial gain.

 

Video: Tips for Buying a Vacation Home from Scott McGillivray

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